Port of Oakland officials announced the approval of an agreement Friday afternoon to terminate a 50-year lease for its second-largest terminal seven years after it was signed.
Outer Harbor Terminal LLC – a joint venture between HHH Oakland Inc., an indirect subsidiary of Ports America, and Terminal Investment Ltd. – announced Jan. 19 it intended to end operations at one of five privately operated terminals at the port.
Ports America had signed a 50-year lease to operate the facility early in 2009. The company signed the exceptionally long lease while promising to make improvements to the terminal’s infrastructure.
Under an agreement approved Friday to terminate that lease, the terminal will continue Oakland vessel and cargo operations through March 31 and will pay about $6 million in rent during that period.
The terminal operator will also clean up debris and remove equipment on the 166-acre property and must pay an additional $5.1 million for further cleanup and repair.
